IN BARCELONA, SPAIN - FIVE years ago, Volkswagen proved to the automotive world that a semi-auto gearbox need not turn the daily drive into a lurching, nausea-inducing event.

Its revolutionary six-speed Direct Shift Gearbox (DSG) was in essence still a manual gearbox with automated clutch and gear engagement - as were other semi-auto transmissions. But VW's clever dual-clutch mechanism made all the difference.

When the car is in motion, the transmission's electronic brain, eerily, anticipates if you are going to change up or down next, and then pre-selects the right gear before you even know you need it.

And because the next gear is already in place before even being called into action, each change is instantaneous and seamlessly executed.

VW may have stolen a march with the DSG, but other manufacturers haven't been standing still in the meantime. BMW, Nissan and Mitsubishi have recently launched similar dual-clutch devices (in the M3, GT-R and Evo X respectively).

To stay ahead, therefore, VW has just released an all-new seven-speed DSG as a complement to the existing six-speed device, which remains in production.

It hasn't just been a simple matter of adding another cog to the existing six-speeder. In fact, that it has seven speeds is not what is truly remarkable about this new device (BMW's newly launched system has as many gears).

This new gearbox is fundamentally different because instead of a 'wet clutch' set-up, where the clutch friction plates are immersed in transmission oil for cooling and lubrication (as is the case on the six-speeder as well as the other dual-clutch gearboxes on the market), the new device employs a 'dry clutch' set-up.

This allows the transmission to operate with just 1.7 litres of oil instead of the 6.5 litres needed on the six-speeder, contributing to a significant weight reduction to 77kg, from the six-speeder's 93kg.

However, it also means that, for any given output, the clutch friction plates need to be larger than those on the 'wet clutch' gearbox.

Due to packaging constraints, the new transmission is hence limited to torque applications up to 250Nm (the six-speeder can currently cope with up to 350Nm). For this reason, the seven-speeder is making its debut in two low-end versions of the Golf: one petrol and one diesel.

Of interest to the Singapore market is the 1.4-litre turbo direct-injection petrol unit, which produces 122bhp. It will replace the base Golf 1.6 FSI currently sold here.

Our test car was fitted with steering-mounted shift paddles to complement the usual automatic-style DSG gearlever between the front seats. On the motorways and mountain roads of our test route, the gearbox never missed a beat. In true DSG fashion, shifts were utterly seamless and would have passed unnoticed but for the change in engine note.

Upchange requests from the steering paddles were instantly met and, if anything, the gearbox responded even more keenly to downchange commands than the six-speeder. The seventh cog has been geared as an overdrive ratio, allowing the engine to purr along at 2,000rpm for a relaxed 100kmh cruise.

Back in town, the gearbox - in automatic mode - played the slick self-shifter to perfection, unobtrusively serving up the right gear at the right time and responding keenly to kickdown commands from the throttle.

The new 1.4 turbo engine powering our test car also proved hugely impressive. It spun with silky keenness right to its 6,500rpm redline, there was always ample torque on tap and despite its modest sounding 122bhp output, it punted our car up mountain roads with near hot-hatch pace.

VW quotes 9.4 seconds for the 100kmh sprint, which is already excellent for a 1.4-litre mid-size hatchback, but even this figure feels conservative.

What's remarkable is that when the Golf, with this superb engine-gearbox combination, arrives here - by the second quarter, we're told - it will be the entry-level model in the range.

For a company which has a name that means 'people's car', it is good to see that VW still believes that cutting-edge technology should benefit the masses.

VW GOLF 1.4 TSI DSG
Price: To be announced
Engine: 1,390cc 16-valve inline-4
Transmission: Seven-speed Direct Shift Gearbox with manual select
Power: 122bhp at 5,000rpm
Torque: 200Nm at 1,500-4,000rpm
0-100kmh: 9.4 seconds
Top speed: 195kmh
Fuel consumption: 7.7 litres/100km (city)
Agent: Volkswagen Group Singapore